January 2020
For 2020, The National Association of REALTORS® Chief Economist Lawrence Yun sees good news for home prices. “National median home price growth is in no danger of falling due to inventory shortages and will rise by 4%,” the long-term NAR economist predicts. He is also expecting the new-home construction market sales to increase 10%. Yun and others would like to see home builders bring more affordable units to market to help ease shortages and slow price gains in that segment.
New Listings in the Twin Cities region decreased 1.8 percent to 4,330. Pending Sales were up 1.2 percent to 3,302. Inventory levels fell 14.9 percent to 7,595 units.
Prices continued to gain traction. The Median Sales Price increased 4.2 percent to $270,000. Days on Market was up 1.5 percent to 66 days. Sellers were encouraged as Months Supply of Homes for Sale was down 16.7 percent to 1.5 months.
We start off the year with continued low interest rates, low unemployment, and rising rents nationally. These factors should encourage healthy buyer demand and sets us up for a strong start to the 2020 housing market and a lot of optimism for the coming spring market.
– SAINT PAUL AREA ASSOCIATION OF REALTORS®
If you have any questions for us about the market or about real estate in general, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.